Gold gets slight safe-haven bid as risk aversion up-ticks

Gold prices are modestly up in midday U.S. trading Tuesday and hit a nearly four-week high earlier, as some safe-haven demand is featured amid keener risk aversion in the marketplace today. October gold futures were last up $4.80 at $1,782.60. September Comex silver futures were last down $0.152 at $20.215 an ounce.

U.S.-China tensions are on the rise today as U.S. House Speaker Nancy Pelosi landed in and visited Taiwan Tuesday evening. China has vowed retaliation. Global stock markets were mostly lower overnight. U.S. stock indexes are mixed at midday.

Overnight news that the U.S. military killed the leader of Al Qaida in a drone strike in Kabul had little impact on markets.

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The key outside markets today see Nymex crude oil prices higher and trading around $94.75 a barrel. Traders are awaiting an OPEC meeting Wednesday. The U.S. dollar index is solidly higher at midday and did help to knock down the precious metals markets from their daily highs.

Technically, October gold futures prices hit a nearly four-week high early on today. The gold futures bears still have the overall near-term technical advantage. However, recent gains have negated a price downtrend on the daily bar chart a fledgling price uptrend is now in place. Bulls’ next upside price objective is to produce a close above solid resistance at $1,800.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,720.00. First resistance is seen at today’s high of $1,794.80 and then at $1,800.00. First support is seen at this week’s low of $1,764.10 and then at $1,750.00. Wyckoff's Market Rating: 3.0.

September silver futures bears have the overall near-term technical advantage. However, a price downtrend has been negated to suggest a market bottom is in place. Silver bulls' next upside price objective is closing prices above solid technical resistance at $21.50. The next downside price objective for the bears is closing prices below solid support at $19.00. First resistance is seen at this week’s high of $20.51 and then at $20.75. Next support is seen at $20.00 and then at last Friday’s low of $19.825. Wyckoff's Market Rating: 3.0.

September N.Y. copper closed down 270 points at 351.50 cents today. Prices closed nearer the session high today. The copper bears have the overall near-term technical advantage. However, a steep six-week-old price downtrend on the daily bar chart has been negated and prices are starting to trend up. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 385.00 cents. The next downside price objective for the bears is closing prices below solid technical support at the July low of 313.15 cents. First resistance is seen at this week’s high of 359.70 cents and then at 365.00 cents. First support is seen at today’s low of 344.85 cents and then at 335.00 cents. Wyckoff's Market Rating: 3.0.

By Jim Wyckoff

For Kitco News

Time to buy Gold and Silver on the dips